Why Government Relief Spending Only Makes the Recession Worse

Bob walks through diagrams from Hayek's famous LSE lectures to explain the Austrian view of the boom-bust cycle.

[davidfarrer]

Thanks for this Bob. I met Hayek a few times and he asked me to take his photo outside Buckingham Palace when he was made a Companion of Honour by the late Queen. Around a year ago I had a wonderful dream in which I had bought a horse and named it "Hayekian Triangle"! The horse won the Grand National and King Charles presented me with the £1million (tax-free) prize.

[DostoinVnimaniay]

Thank you for the education you provide.

[philipvecchio]

This is also a great point when it comes to Trade Deficits. Just because someone imports 100k in stuff doesn't mean there won't be $1million in activity because if those imports.

[aaronrosen]

Sharing this with every socialist/commie I know.

[RichardCypher]

Thank you for this! I had heard you mention Hayekian triangles in other shows and this makes it so much clearer what you were talking about.

[kanalarchis]

Bob, thank you. But can I make a suggestion? If you can, please make your explanations more punctual. E.g. I understood the statement of the paradox of savings leading to investment instead of the opposite. But the solution to the paradox was so far from the problem statement, that I missed it. My attention span is not 10 minutes, it's shorter. You need to state the problem, and then immediately make your point before you lose the listener. Avoid side-comments. Straight for the punch. Then, you can go back and add to it. But you don't want the listener to miss the main point.

[manoelreinaldoreinaldo]

Thank you so much for this master class about that content . I am follow-up their content .

[clockworkOMNI]

Pulled over, paused video around 22min mark, added video to watch later playlist, watched remainder with figures later same day. Thanks for headsup.

[friendlyfire]

This really cleared up a long-standing question for me, in conjunction with reading the text which you so helpfully provided. May I respectfully make a small suggestion? Sometimes it seems as though you think of your examples on the spur of the moment; in this case the bread-baking example may not have been very apt. That seemed a bit forced, and maybe that's why you let it go when it came to covering a longer production process with more stages. I think I've seen many of my professors do the same thing way back in the day, so you aren't alone, but I wonder if you may benefit from thinking your examples through ahead of time a little more thoroughly? Thanks again; I really gain a lot from these lectures. My main professor for my limited economics education was Martin Feldstein, and it's been very enlightening to hear a more Austrian view of things.

[fasteddie]

I need a better business model, mine ain't working much

[nickjensen]

Genuine question: according to this model, the savings-fueled lengthening of the structure meant greater final output but a lower prices.
To keep things consistent, the collapsing structure of production as a result of the bust shown in the last diagram would feature a collapsing output with higher prices. Is this correct? We don’t tend to associate a rise in final goods prices with the bust phase of the business cycle, but that is what this model implies. Am I missing something? Have I thought about inflation incorrectly? Should I instead think about it like demand catching up with the reality of scarcity previously hidden by the credit expansion?

[rogerwelsh]

Why is every lecture he gives soooo painful!

[Mark-gett]

Isn't Hayek making (quite) an assumption that total spending (of 120 for both consumer plus production spending) would stay the same in fig. 3 as it does in 2 given the reduction in consumer spending? Unless, even if total spending at the production levels was not the same for both figures, there would somehow be more- if only on a proportional/percentage level- production stage investment given a reduced amount of consumer spending(?).

[peterreiss]

I gave up on you again. Ten minutes into the talk and you still have not gotton to the point of the talk. You just keep talking around the subject. Give us what Hayak says first then contrast with Rothbard, Robbin, or any other embellishment.

[ooflajboo]

why do you speak like this

[AmyeCindi]

Thanks for the breakdown! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?